9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 445 - AAR - GSTClassification of supply - Levy of GST - Supply of service - exempted supply or not? - printing of various items - Whether, in the facts and circumstances as explained in Annexure II, supply of service of (i) Printing of Pre examination items like question papers, OMR sheets (Optical Mark Reading), Answer booklets for conducting of an examination by the educational boards be treated as exempted supply of service by virtue of the notifications cited supra in Annexure I?; (ii) Printing of Post examination items like marks card, grade card, certificates to educational boards (up to higher secondary) after scanning of OMR Sheets and processing of data in relation to conduct of an examination be treated as exempted supply of service by virtue of the notifications cited supra in Annexure I?; (iii) Scanning and processing of results of examinations be treated as exempted supply of service by virtue of the notifications cited supra in Annexure I? - Held that - Exemption from payment of GST in respect of certain supplies of Services has been provided under Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 as amended by Notification No.02/2018-Central Tax ( Rate) dated 25.01.2018 - the services provided to educational institutions for conducting of examinations are eligible for exemption under entry No.66 of Notification No. 12/2017- Central Tax (Rate) dt. 28.6.2017. What would be the classification and the GST rate, for the supply of services in the nature of printing of cheque books in the below mentioned two situations where the physical inputs of paper belongs to (i) the customer banks; (ii) the applicant? - Held that - In this case, assessees are undertaking two types of supplies. (i) In respect of paper supplied by the banks, they print the cheque format of respective banks and (ii) physical inputs including paper and ink would be borne by the company and the cheques after printing as per the bank s specifications, would be supplied to them. In both the cases, the unit prints the cheque and then supplies the cheque book to the bank after completion of the printing work - In respect of the situation, where the paper is being supplied by the banks, and the applicants are undertaking job work of printing the cheque and converting them as cheque books, the predominant supply in the instant case is supply of service. As the services by way of any treatment or process on goods belonging to another person, in relation to- printing of all goods falling under chapter 48 or 49, which attract CGST @ 2.5% or Nil are covered under sub-item ( c) of item (ii) at Serial No.26 of the Notification No.11/2017-Central Tax ( Rate) dated 28.06.2017 as amended, and the cheques, loose or in book form being an exempted supply in terms of S.No. 118 to the Notification No. 02/2017- Central Tax (Rate) dated 28.06.2017, the supply of service by the applicant attracts GST @ 5% ( 2.5% CGST 2.5% SGST). In respect of supply of cheque books where the printing paper and inks are being borne by the applicants, the impugned goods merit classification under Tariff heading 4907 as goods and they are an exempted supply in terms of Serial No 118 to the Notification No.02/2017-Central Tax (Rate) dated 28.06.2017. Hence, cheques or cheque books would not attract any GST and are an exempted supply in terms of the Notification. Whether, in the facts and circumstances as explained in Annexure II, what would bethe classification and the GST rate for, printing and supply of Aadhaar cards on paper to the Unique Identification Authority of India (UIDAI)? - Held that - The services can be considered as composite service in terms of section 2(30) of CGST/TGST Act, 2017. These services cannot be considered as mixed supply as each service is dependent on one another and all the supplies are provided in conjunction. Despatching of aadhaar card will not be complete unless it is printed, laminated and franked by the applicant. Likewise all the services are interdependent on one another. Hence it cannot be considered as mixed supply in terms of section 2(74) of CGST/TGST Act, 2017. In the entire gamut of things being undertaken by the applicant, it appears that, it is an activity of predominant nature of supply of service rather than supply of goods - Accordingly, it appears that, the services rendered by the applicant merits as supply of service and accordingly falls under serial no.27 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 as amended and the rate of tax applicable is 12% ( 6% CGST 6% SGST). What would be the classification and the GST rate, for printing and sale of Polyvinyl chloride (PVC) Cards for various customers? - Held that - In terms of GST Circular No.11/11/2017-GSTdated 20.10.2017, it is clarified that, supply of books, pamphlets, brochures, envelopes, annual reports, leaflets, cartons, boxes etc. printed with logo, design, name, address or other contents supplied by the recipient of such printed goods, are composite supplies and the question, whether such supplies constitute supply of goods or services would be determined on the basis of what constitutes the principal supply - Principal supply has been defined in Section 2(90) of the Central Goods and Services Tax Act as supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary. In the instant case since the PVC cards are belonging to the applicant, predominant supply is that of goods and the supply of printing of the content supplied by the recipient of supply is ancillary to the principal supply of goods and therefore such supply would be classified as supply of goods falling under chapter 3920 of the Customs Tariff as made applicable to GST Tariff, hence it attracts 18% GST ( 9%CGST 9%SGST) as per Sl.No.106 of Schedule III of Notification No.1/2017-Central Tax (Rate) dated 28th June, 2017. Ruling - The supply of service to educational institutions for conducting of examinations are eligible for exemption under entry No.66 of Notification No. 12/2017- Central Tax (Rate) dt. 28.6.2017. The supply of Printing of cheque books (where the paper is being supplied by the banks) are classifiable under heading 9988 and attracts GST @ 5% (2.5% CGST 2.5% SGST). The supply of cheque books(where the printing paper and inks are being borne by the applicants) are classifiable under heading 4907 of GST Tariff as goods and would not attract any GST as they are exempted supply in terms of Serial No 118 to the Notification No.02/2017-Central Tax (Rate) dated 28.06.2017. The supply of Aadhaar Cards are classifiable under heading 9989 of GST Tariff and attracts GST @ 12% ( 6% CGST 6% SGST) in terms of S.No.27 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 as amended. The printing and supply of Polyvinyl chloride cards (PVC) are classifiable under heading 3920 of GST Tariff and attracts 18% GST (9%CGST 9%SGST) in terms of S.No.106 of Schedule III of Notification No.1/2017Central Tax (Rate) dated 28th June, 2017.
Issues Involved
1. Exemption of GST on services related to pre-examination, post-examination, and result processing for educational institutions. 2. Classification and applicable GST rate for the supply of printed cheque books. 3. Classification and applicable GST rate for the printing and supply of Aadhaar cards on paper. 4. Classification and applicable GST rate for the printing and supply of Polyvinyl chloride (PVC) cards. Detailed Analysis 1. Exemption of GST on Services Related to Educational Institutions Issue: Whether the services of printing pre-examination items, post-examination items, and scanning and processing of examination results are exempt from GST. Judgment: - Pre-examination items: The printing of question papers, OMR sheets, and answer booklets provided to educational institutions is exempt under Entry No. 66 of Notification No. 12/2017 - Central Tax (Rate). - Post-examination items: The printing of marks cards, grade cards, and certificates for educational institutions is also exempt under the same notification. - Scanning and processing of results: These services are considered an integral part of the conduct of examinations and are thus exempt from GST as well. 2. Classification and GST Rate for Printed Cheque Books Issue: Classification and GST rate for the supply of printed cheque books where paper is supplied by the banks or by the applicant. Judgment: - Paper supplied by banks: The printing of cheques on paper supplied by banks is classified as a job work service under Heading 9988 and attracts GST at 5% (2.5% CGST + 2.5% SGST). - Paper and ink supplied by the applicant: The supply of cheque books where both paper and ink are supplied by the applicant is classified under Heading 4907 and is exempt from GST under Serial No. 118 of Notification No. 02/2017 - Central Tax (Rate). 3. Classification and GST Rate for Aadhaar Cards Issue: Classification and GST rate for the printing and supply of Aadhaar cards on paper. Judgment: - The services of printing, laminating, enveloping, franking, and dispatching Aadhaar cards are considered a composite supply of services under Heading 9989. - The applicable GST rate for these services is 12% (6% CGST + 6% SGST) as per Serial No. 27 of Notification No. 11/2017 - Central Tax (Rate). 4. Classification and GST Rate for PVC Cards Issue: Classification and GST rate for the printing and supply of Polyvinyl chloride (PVC) cards. Judgment: - The printing on PVC cards, which are plastic cards, is classified as a supply of goods under Heading 3920. - The applicable GST rate for these goods is 18% (9% CGST + 9% SGST) as per Serial No. 106 of Schedule III of Notification No. 1/2017 - Central Tax (Rate). Conclusion 1. Services related to the conduct of examinations for educational institutions are exempt from GST. 2. Printing of cheque books on paper supplied by banks attracts 5% GST, while cheque books where paper and ink are supplied by the applicant are exempt from GST. 3. The printing and supply of Aadhaar cards are classified as services and attract 12% GST. 4. Printing and supply of PVC cards are classified as goods and attract 18% GST.
|
